Trending
CHARLESTON - United Bankshares Inc. this week reported earnings for the third quarter of 2026 of $128.7 million, or $0.94 per diluted share.
Third quarter 2026 results produced annualized returns on average assets, average shareholders' equity and average tangible common equity, a non-GAAP measure, of 1.5%, 9.24% and 14.68% respectively.
"Record net interest income, an expanding net interest margin, and strong organic growth drove earnings in the third quarter of 2026," said Richard M. Adams Jr., United's chief executive officer. "Continuing to underpin our success are our disciplined expense control and credit underwriting cultures, as well as our ongoing focus on efficient capital allocation."
Earnings for the second quarter of 2026 were $131.4 million, or $0.95 per diluted share, and annualized returns on average assets, average shareholders' equity and average tangible common equity were 1.56%, 9.53% and 15.15%, respectively. Earnings for the third quarter of 2025 were $130.7 million, or $0.92 per diluted share, and annualized returns on average assets, average shareholders' equity and average tangible common equity were 1.57%, 9.58% and 15.45%, respectively.
Net interest income for the third quarter of 2026 was a record $294.3 million, an increase of $8.9 million, or 3%, from the second quarter. Fully tax-equivalent net interest income, a non-GAAP measure which adjusts for the tax-favored status of income from certain loans and investments, also increased $8.9 million, or 3%, from the second quarter. The increases were primarily due to loan growth that was largely funded by deposit growth, the impact of strategic purchases of higher yielding investment securities throughout 2026 and the impact of higher market interest rates.
Average net loans and loans held for sale increased $227.5 million, or 4% on an annualized basis, from the second quarter. The yield on average net loans and loans held for sale increased 7 basis points from the second quarter. Average investment securities increased $94.7 million, and the yield on average investment securities increased 15 basis points from the second quarter. Average interest-bearing deposits increased $164.8 million, or 3% on an annualized basis, from the second quarter, while the rate paid on average interest-bearing deposits increased 4 basis points. The net interest margin was 3.86% and 3.81% for the third quarter and the second quarter of 2026, respectively.
The provision for credit losses for the third quarter was $6.2 million as compared to $5 million for the second quarter. The provision for credit losses for the third quarter reflected $11.6 million of net charge-offs and a $5.4 million decrease in the allowance for loan and lease losses from the prior quarter-end.
For the third quarter, $6.3 million of net charge-offs, and the corresponding decrease in the allowance for loan and lease losses, were related to an individually evaluated commercial loan relationship for which the charged off exposure was fully reserved as of the prior quarter-end. The provision for credit losses for the second quarter reflected $5.1 million of net charge-offs and a relatively flat allowance for loan and lease losses from the prior quarter-end.
Noninterest income for the third quarter was $30.8 million, a decrease of $7.7 million, or 20%, from the second quarter. Net losses on investment securities were $348,000 for the third quarter, compared to net gains on investment securities of $2.8 million for the second quarter. Other noninterest income of $1.3 million for the third quarter was a decrease of $2.7 million from the second quarter. Income from mortgage banking activities of $1.3 million for the third quarter was a decrease of $1.6 million from the second quarter. Net losses on investment securities for the third quarter were driven by net unrealized fair value losses on equity securities. Net gains on investment securities of $2.8 million for the second quarter included a $5.9 million gain as a result of the sale of an unaffiliated company in which United held an investment, a $5.7 million gain from a VISA share exchange and $1 million in unrealized fair value gains on equity securities partially offset by a $9.7 million loss on the sale of $81 million of available for sale investment securities. The decrease in other noninterest income was primarily due to lower market values of underlying investments associated with post-retirement benefit plans, which was largely offset by a decrease in post-retirement benefit costs recorded in noninterest expense. The decrease in income from mortgage banking activities was primarily due to a lower quarter-end valuation of mortgage derivatives and loans held for sale as well as due to lower mortgage production volume.
Noninterest expense for the third quarter of 2026 was $156.7 million, an increase of $2 million, or 1%, from the second quarter. The increase in noninterest expense was driven by a $2.8 million increase in employee compensation and a $2.7 million increase in the expense for the reserve for unfunded loan commitments, partially offset by a $3.7 million decrease in employee benefits. The increase in employee compensation was primarily due to higher salaries, reflecting strategic hiring and a full quarter's impact of annual salary increases, as well as due to higher production-related commissions. The increase in the expense for the reserve for unfunded loan commitments reflected a larger increase in outstanding loan commitments during the third quarter, compared with the second quarter. The decrease in employee benefits was primarily due to lower post-retirement benefit costs and lower health insurance expenses.
For the third quarter of 2026, income tax expense was $33.4 million, compared to $32.8 million for the second quarter.
Net interest income for the third quarter of 2026 increased $14.1 million, or 5%, from the third quarter of 2025. Fully tax-equivalent net interest income also increased $14.1 million, or 5%, from the third quarter of 2025.
The increases were primarily due to a lower rate paid on average interest-bearing deposits, loan growth and the impact of strategic purchases of higher yielding investment securities throughout 2026. These increases were partially offset by a lower yield on average net loans and loans held for sale and growth in average interest-bearing deposits. The rate paid on average interest-bearing deposits decreased 33 basis points from the third quarter of 2025. Average net loans and loans held for sale increased $887.3 million, or 4%, from the third quarter of 2025. The yield on average net loans and loans held for sale decreased 18 basis points from the third quarter of 2025. Acquired loan accretion income decreased $2.6 million from the third quarter of 2025. Average investment securities increased $337.9 million and the yield on average investment securities increased 14 basis points from the third quarter of 2025. Average interest-bearing deposits increased $649.8 million, or 3%, from the third quarter of 2025. The net interest margin was 3.86% and 3.80% for the third quarter of 2026 and the third quarter of 2025, respectively.
The provision for credit losses was $6.2 million for the third quarter of 2026, compared to $12.1 million for the third quarter of 2025.
Noninterest income for the third quarter of 2026 decreased $12.4 million, or 29%, from the third quarter of 2025. Net losses on investment securities were $348,000 for the third quarter of 2026 as compared to net gains on investment securities of $10.4 million for the third quarter of 2025. Other noninterest income of $1.3 million for the third quarter of 2026 was a decrease of $1.1 million from the third quarter of 2025. Income from mortgage banking activities of $1.3 million for the third quarter of 2026 was a decrease of $1.2 million from the third quarter of 2025. Net gains on investment securities of $10.4 million for the third quarter of 2025 were primarily due to unrealized fair value gains on equity securities. The decrease in other noninterest income was primarily due to lower market values of underlying investments associated with post-retirement benefit plans, which was largely offset by a decrease in post-retirement benefit costs recorded in noninterest expense. The decrease in income from mortgage banking activities was primarily due to a lower quarter-end valuation of mortgage derivatives and loans held for sale as well as due to lower mortgage production volume.
Noninterest expense for the third quarter of 2026 increased $10 million, or 7%, from the third quarter of 2025. Employee compensation increased $5.3 million from the third quarter of 2025 primarily due to higher salaries, production-related commissions and employee incentives. The expense for the reserve for unfunded loan commitments was $2.8 million for the third quarter of 2026 as compared to a net benefit of $3.2 million for the third quarter of 2025. Partially offsetting these increases to noninterest expense was a $2 million decrease in employee benefits from the third quarter of 2025, primarily due to lower post-retirement benefit costs and lower health insurance expenses.
Income tax expense for the third quarter of 2026 was flat from the third quarter of 2025, decreasing $298,000, or less than 1%. The impact of lower earnings was largely offset by a slightly higher effective tax rate.
Earnings for the first nine months of 2026 were $384.3 million, or $2.77 per diluted share, as compared to earnings of $335.8 million, or $2.36 per diluted share, for the first nine months of 2025.
Net interest income for the first nine months of 2026 was $862.1 million, an increase of $47.4 million, or 6%, from the first nine months of 2025. Fully tax-equivalent net interest income increased $47.3 million, or 6%, from the first nine months of 2025. The increases were primarily due to a lower rate paid on average interest-bearing deposits and loan growth. These increases were partially offset by a lower yield on average net loans and loans held for sale and growth in average interest-bearing deposits. Average net loans and loans held for sale increased $1.1 billion from the first nine months of 2025. The yield on average net loans and loans held for sale decreased 18 basis points from the first nine months of 2025. Acquired loan accretion income decreased $7.9 million from the first nine months of 2025. Average investment securities increased $227.2 million from the first nine months of 2025. Average interest-bearing deposits increased $930.3 million from the first nine months of 2025. The rate paid on average interest-bearing deposits decreased 36 basis points from the first nine months of 2025. The net interest margin was 3.82% and 3.77% for the first nine months of 2026 and the first nine months of 2025, respectively.
As of Sept. 30, non-performing loans were $109.9 million, or 0.43% of loans and leases, net of unearned income. Total non-performing assets were $121.1 million, including other real estate owned of $11.2 million, or 0.35% of total assets. As of June 30, NPLs were $110.6 million, or 0.44% of loans and leases, net of unearned income. Total NPAs were $120.9 million or 0.36% of total assets as of June 30. As of Dec. 31, 2025, NPLs were $101.5 million, or 0.41% of loans and leases, net of unearned income. Total NPAs were $110.3 million or 0.33% of total assets.
As of Sept. 30, 2026, the allowance for loan & lease losses was $294.1 million, or 1.16% of loans and leases, net of unearned income. As of June 30, the allowance for loan and lease losses was $299.5 million, or 1.20% of loans & leases, net of unearned income. As of Dec. 31, 2025, the allowance for loan and lease losses was $297.5 million, or 1.20% of loans and leases, net of unearned income.
United continues to be well-capitalized based upon regulatory guidelines. United's estimated risk-based capital ratio is 15.2% as of Sept. 30, while estimated Common Equity Tier 1 capital, Tier 1 capital and leverage ratios are 12.9%, 12.9% and 11.1%, respectively. The regulatory requirements for a well-capitalized financial institution are a risk-based capital ratio of 10%, a Common Equity Tier 1 capital ratio of 6.5%, a Tier 1 capital ratio of 8%, and a leverage ratio of 5%.
During the third quarter of 2026, United repurchased, under a previously announced stock repurchase plan, approximately 2.1 million shares of its common stock at an average price per share of $46.84. During the first nine months of 2026, United repurchased, under a previously announced stock repurchase plan, approximately 5.4 million shares of its common stock at an average price per share of $43.77.
United Bankshares Inc. is a financial services company with consolidated assets of approximately $34 billion as of Sept. 30. United is the 35th largest banking company in the U.S. based on market capitalization. United is the parent company of United Bank, which has over 240 offices across West Virginia, Ohio, Virginia, Maryland, North Carolina, South Carolina, Pennsylvania, Georgia and Washington, D.C. More information is available online at ubsi-inc.com.